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India and Nepal on Wednesday concluded their first-ever bilateral meeting between their probe agencies tasked to combat money laundering and discussed ways to check the crime taking place through the porous border between the two neighbors. A visiting delegation of Nepal's department of money laundering investigation (DMLI), led by its Director General Pushpa Raj Shahi, attended the two-day meet with the officials from the Enforcement Directorate (ED).

"This was the first head of the agency level meeting between the two anti-money laundering agencies of India and Nepal. The meeting was aimed at developing mutual cooperation and strengthening capacity building in the areas of money laundering and asset recovery between India and Nepal," an official statement issued by the ED said. The Indian side was led by ED Director (in-charge) Rahul Navin and both the sides had officials from their respective embassies in Delhi and Kathmandu apart from the Indian external affairs ministry.

During the meeting, both sides presented an overview of their respective anti-money laundering legislations and exchanged ideas for combating the menace of money laundering, it said. Both the sides also presented case studies and discussed common modus of money laundering schemes, as per the statement.

The ED, it said, explained in detail about various tools of investigation, analytical software and forensic tools/equipment used during the money laundering investigations. "Emphasis was placed upon on the fact that money laundering is a global problem that not only threatens security, but also compromises the stability, transparency and efficiency of financial systems, thus undermining economic prosperity.

"Therefore, both the sides expressed their concern towards money laundering risks through the porous border between India and Nepal," the statement said. The two agencies also "agreed" to continue strengthening cooperation in anti-money laundering and combating the financing of terrorism efforts, through increased information sharing and coordination, including expeditious sharing of evidence and information for money laundering and terrorism financing investigations, as and when necessary, it said.

The importance of fighting financial crimes and on the effective implementation of the Financial Action Task Force (FATF) standards to protect abuse of financial systems was agreed upon, as per the ED. The Nepalese delegation "requested assistance" to set up forensic labs like the one ED has, and to arrange capacity building and training for DMLI officers.

ED expressed its "willingness" on this request and to strengthen agency-to-agency cooperation through informal channels in the areas of money laundering and asset recovery. "As a step closer, a draft MoU between ED and DMLI for enhancing mutual cooperation in the investigation of money laundering offenses was discussed and the same would be signed in due course after obtaining the necessary approvals from their respective competent authorities," the statement said.

Prime Minister Pushpa Kamal Dahal has said that the government is committed to give an impetus to the country's economic transformation by keeping the morale of investors, including the industrialists and business community, high.

Inaugurating the Hyundai Motor Assembling Plant of Laxmi Motor Corporation in Nawalparasi today, PM Dahal stated that the country would be taken ahead on the journey of prosperity through economic development.

He said the economy would be strengthened by taking the private sector into confidence, asserting that the government is committed to facilitating the investment.

"The country's economy cannot be made robust without the investment of the private sector and the collaboration between the state and the private sector. The productivity cannot be increased and employment opportunities also cannot be created without this," PM Dahal said, adding that the government is always in support of creating a climate conducive to investment, promoting the private sector and security and facilitation in the investment areas.

Expressing the belief that the domestic and foreign investors would be attracted more towards the industry-friendly environment in Nepal with the operation of this new industry, he said import would be substituted and hundreds of skilled and semi-skilled laborers will get jobs along with industrialization.

The Prime Minister viewed that the consumers can buy vehicles at a fair price and a positive contribution would be there in consumption of domestic resource and electricity, a partnership in the local development and on the GDP as well when the motor assembling is done within the country itself.

"Our fiscal and monetary policies should be promotional, rather than restrictive. These policies and laws should contribute to the production and employment promotion," he said. The PM further said the domestic and external indicators of the economy are in the positive due to the consistent efforts of the government.

"The Third Investment Summit has concluded recently. The government has amended important Acts, bringing an ordinance on the eve of the Summit. This will play a key role in addressing the problems seen in the investment sector and also in encouraging and promoting the internal and external investment," he added.

The Prime Minister believed that the enthusiasm seen in the investment summit, the common viewpoint and commitment witnessed in the political parties of Nepal and the attraction of the investors have indicated towards Nepal soon becoming an attractive destination for investment.

The main opposition Nepali Congress said that a parliamentary probe committee to investigate cooperative fraud charges against Deputy Prime Minister and Home Minister Rabi Lamichhane is its bottom line.

A Parliamentary Party meeting held on Friday made a conclusion that the party would not allow the House to function until the demand of forming a parliamentary probe committee to investigate Lamichhane is addressed, Congress Chief Whip Ramesh Lekhak said.

He said that the government will be held responsible if the Parliamentary meeting is obstructed.

“The bottom line of the Congress is to form a parliamentary probe committee to investigate Rabi Lamichhane. The government has been ignoring the demand of the main opposition. The government itself will be responsible if the Parliament meeting is obstructed,” he said to mediapersons after the meeting.

He said that more evidence has emerged to confirm Lamichhane’s involvement in the cooperative fraud case.

The Congress said that the government mechanism has been misused to protect Lamichhane.

Earlier this week, on May 5, the Janata Samajbadi Party Nepal, led by Upendra Yadav, underwent a sudden split. Out of its 12 lawmakers in the House of Representatives, seven members led by Ashok Rai filed an application with the Election Commission seeking the registration of a new party. The following day, despite legal ambiguity, the election body, perceived to be influenced by parties in power, registered the new party, Janata Samajbadi Party and issued a certificate of political party to the Rai-led panel.

Yadav, also the Deputy Prime Minister and Minister for Health, was in the US when the split occurred. Upon hearing the news, he cut short his trip and returned to Nepal, but there was little he could do to persuade the dissident leaders to undo their action. What might have caused the split within Samajbadi party? There's a prevalent belief among top politicians that Yadav and Madhav Kumar Nepal, chair of CPN (Unified Socialist), were plotting to withdraw support from the current coalition government simultaneously, potentially to topple it.

Media reports suggest that Prime Minister Pushpa Kamal Dahal and CPN-UML Chair KP Sharma Oli got wind of this plan and orchestrated the split to salvage the coalition. Rai and his supporters publicly endorsed this narrative, claiming they felt compelled to part ways with the mother party due to Yadav's alleged intention to withdraw support from the current coalition. Days after the party split, Prime Minister Dahal on Thursday stated his determination to maintain the coalition by any means necessary. 

Following Samajbadi’s split, there were rumors that senior Unified Socialist leader Jhala Nath Khanal may also split the party if its chairman, Nepal, decides to withdraw from the Dahal-led government. However, Khanal has refuted the rumors. Upon his return from the US, Yadav met with Prime Minister Dahal to assert his commitment to the coalition and clarify any misinformation. Despite the split, Yadav expressed his intention to remain in the government, though much depends on the prime minister, who appears to favor the Rai-led faction for their role in preserving the coalition. Even if Yadav walks out of the government, Dahal will technically have majority support in the Parliament to continue his government.

The Unified Socialist has also publicly declared its intent to stay in the government, despite its Chairman Nepal voicing doubts about this coalition’s longevity. While reports suggest that the main opposition, Nepali Congress, was in discussions with Nepal of Unified Socialist and Yadav of Samajbadi Party about forming a new coalition, there were reportedly no significant talks between NC and Yadav.

A senior NC leader indicated readiness to accept Nepal as prime minister if the coalition collapses, but denied willingness to support Yadav for the position. Meanwhile, Yadav's camp has expressed willingness to form a new coalition only if offered the prime ministerial position. The NC itself is a divided house when it comes to forming a coalition with the Samajbadi and Unified Socialist. While leaders close to Deuba want to form a new coalition sans UML, its senior leader Shekhar Koirala is in talks with the UML to forge a coalition between the two largest parties. 

However, according to some UML leaders, the party chair, Oli, is in no rush to break the current coalition. They say he is aiming for a long game with the sole purpose of making the UML the largest party through the general elections of 2027. It appears Oli is in no hurry to become prime minister.   With the Samajbadi party split in two, it is now up to Prime Minister Dahal to decide whether to keep both Yadav and Rai factions in the coalition. He is already under pressure from the Rai camp to throw out the Yadav faction. Rai has clearly stated that the prime minister should choose between him and Yadav.

The events that unfolded over the past few days reveal that the split within JSP was not solely driven by coalition issues; intra-party conflicts also played a significant role. Before leaving for the US, Yadav issued an intra-party circular outlining the formation of an election committee for the upcoming general convention. Rai claimed Yadav favored his supporters as convention representatives, sidelining other senior party members. Yadav was also accused of attempting to transform the party into a regional entity centered on Madhes, despite its national scope. Rai acknowledged that aside from coalition concerns, intra-party disputes fueled their rebellion against Yadav.  Despite multiple splits over the years, Yadav continues to retain leadership of the party due to his strong base in Madhes. He hopes to do the same this time as well.